The purpose of this qualitative, multi-case study was to identify and describe the factors associated with new service development (NSD) activities for organizations that represented four segments of the electric services industry. Through telephone interviews and reviews of organizational documents, data was collected from eighteen study participants who represented fourteen organizations that had developed and marketed at least one new service within one year of the study. Data analysis revealed nine major themes associated with NSD. The key findings from this study indicated that human resources and having a well-defined process for developing new services were essential to the success of NSD. Two NSD models emerged from the study based upon the degree of innovation and the level of complexity associated with the services to be developed. Conversely, not having the proper levels of competent personnel was the main hindrance to NSD. The results of the study found that human resources management was the most important factor in NSD and that existing NSD models can be improved by recognizing NSD as a cyclical process rather than a linear one. Recommendations for future studies include conducting a quantitative study to test the soundness of the NSD models that emerged from this study and directly investigate how customers are involved in each phase of the NSD process.
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